Buying A Used Car? Don't Make These BIG Borrower Mistakes
When you are anxious about getting a new ride and excited to get behind the wheel of a car, it can be incredibly easy to make a mistake in the auto loan process. Particularly when you are buying a used car, it is super important to make sure the borrowing process is a well-thought out decision. Here are a few big mistakes to make sure you avoid before you sign your name and accept a loan for a used vehicle.
1. Not checking out the history of the car you plan to buy.
Information on used vehicles is more easily accessible now than it has ever been before. Therefore, there is no reason why you should be borrowing money to get a car that you know nothing about. Using the internet to get the inside scoop about how many owners a vehicle has passed through and whether or not it has been through a major accident. You cannot always tell a lot about a car just by how it looks or even runs, which could land you with a loan on a car that has serious issues.
2. Not being openly honest with yourself about your budget.
When you initially view that shiny new-used car on the lot, it is easy to let the stars in your eyes get in the way of your better judgement about what you can afford. Before you even visit a lender at all, you should have a clear view of your monthly budget and what type of payment you can truly afford. Make sure you don't forget that investing in a different vehicle could also mean taking on a larger insurance premium as well.
3. Accepting a longer-term loan in exchange for smaller monthly payments.
Those long-term loans look attractive because it gives you the ability to have a small monthly payment, which is fine if it is all you can afford. However, when you are buying a used vehicle, a long-term payment commitment may be a really bad idea because a used vehicle is likely going to have a shorter lifespan.
4. Deciding on a car before you talk to a lender.
Most people go looking for a used vehicle first and then pay a visit to their lender. This often leads to the disappointment of finding out you do not qualify for enough money or the car itself is not worthy of the asking price. It is actually best to go see your lender first, find out what you qualify for, and then go shopping. Click here to learn more about auto loans in your area.